Company A has a fixed asset with an original cost of $300,000, a residual value of $25,000 and a useful life of 10 years. The company also
has land with an original cost of $1,000,000. Under the straight-line method, the journal entry to record the annual depreciation expense is:
A. Depreciation Expense
27,500
Accumulated Depreciation
27,500
B. Depreciation Expense
30,000
Fixed Asset
30,000
C. Depreciation Expense
26,000
Accumulated Depreciation
26,000
D. Depreciation Expense
5,000
Accumulated Depreciation
5,000